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Almost 40% of Taiwan firms will not pay year-end bonuses: poll

Almost 40% of Taiwan firms will not pay year-end bonuses: poll

Taipei, Nov. 12 (CNA) Nearly 40 percent of employers in Taiwan have said they will not give year-end bonuses to their workers this time around as the domestic economy is slowing down and global demand is dropping, according to survey released Thursday. The poll by local online job bank yes123 showed that while 38 percent of companies will maintain the tradition of paying their workers a bonus around the end of the current Lunar Year that wil fall in early next February, 52 percent will not, and 10 percent are still undecided. However, among those companies that plan to pay bonuses, some in the high-tech and old economy sectors that depend heavily on exports will offer smaller bonuses than last year, said Yang Tsung-pin (???), a spokesman for yes123. Employees in the property sector also said that they will pay smaller bonuses than last year as the local property market has been feeling the pinch from shrinking housing transactions, Yang said. On the other hand, companies in the financial, insurance, and accounting sector will hand out bigger bonuses because they posted higher earnings this year, Yang said. Employees in the biotech, and cultural and creative industries are also set to receive higher bonuses this year because of their companies' improved bottom lines, he said. The results of the poll reflected the weakness of the domestic economy, the job bank said, noting that a similar survey around the same time last year showed 75.3 percent of companies were committed to year-end bonuses, 2.9 percent had decided not pay any, and 21.8 percent were undecided. Taiwan's third-quarter gross domestic product (GDP) contracted 1.01 percent year-on-year, the worst performance since the third quarter of 2009 when the economy fell 1.24 percent year-on-year. The third-quarter contraction resulted largely from a 13.86 percent drop in Taiwan's exports from a year earlier in U.S. dollar terms. Many market analysts have said Taiwan's economy is not like to show more than 1 percent growth for the whole of 2015, due to a poor export performance. Taiwan recorded a 3.77 percent GDP growth in 2014. The yes123 survey, conducted during the Nov. 2-11 period, collected 750 valid questionnaires and had a confidence level of 95 percent, with a margin of error of 3.58 percentage points. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-09-23 05:58 GMT+08:00